By Rich Anderson
July 16, 2007

Albuquerque (NM) Mayor Martin J. Chavez and Fayetteville (AR) Mayor Dan Coody, Co-Chairmen of the Mayors Water Council (MWC), convened a meeting in Los Angeles on June 22 at the 75th Annual Meeting to release information on water infrastructure spending and local progress towards asset management.

Water Infrastructure Asset Management

Coody presented preliminary results of the 2006/2007 National City Survey on Water Infrastructure Asset Management. The survey was conducted by the Mayors Water Council to gauge local progress towards implementing asset management techniques. Coody said that asset management is part of the scientific management approach to operating, maintaining and rehabilitating public infrastructure. It is a way for public managers to get the most value out of the public infrastructure paid for by taxpayers.

Coody stated that asset management in city water and sewer works is starting to catch-on. Some 40 percent of cities have comprehensive asset management programs for their drinking water systems and their wastewater systems. Another 30 to 36 percent have implemented partial programs. About a quarter of the cities surveyed indicated that they have not yet implemented asset management programs. However, more than 90 percent of cities stated that they have conducted an inventory of their physical assets (water infrastructure); and, most cities have conducted an assessment of the condition of those assets.

It is well established now that the top water resources priority of major American cities is to rehabilitate aging water infrastructure. The MWC survey revealed that 16 percent of cities are experiencing mostly increases in water main breaks each year. About one-third of cities are experiencing a mix of increased and decreased breaks from year to year; and, 27.5 percent are experiencing a decreasing number of breaks each year.

Coody stated that the preliminary survey results indicate that 18 to 23 percent of cities are on water and sewer pipe replacement schedules that will exceed 100 years. About 30 percent of cities are on replacement schedules of 20 years or less. 48 percent of cities are on pipe replacement schedules of between 20 and 100 years. He stated that about 65 percent of cities spend under $1 million each year to replace their water and sewer pipes. About 35 percent of cities spend over $1 million each year; and half of those cities are spending over $2 million for pipe replacement projects.

Coody was upbeat on the progress of cities adopting and implementing comprehensive asset management programs. He indicated that the survey results were encouraging and that more cities plan to adopt such programs in the near future. The MWC survey report is due to be released in late September at the Mayors Water Summit in San Francisco.

Albuquerque Mayor Martin J. Chavez released a new report prepared by the Mayors Water Council on local government spending on water and sewer infrastructure and services, (Who Pays for the Water Pipes, Pumps and Treatment Works? — Local Government Expenditures on Sewer and Water 1991 to 2005). Chavez stated that in 1991 combined sewer and water expenditures were $45.6 billion for local government and $1.1 billion for state government. The local share was 96.7 percent. He stated that spending increased dramatically by 2005 to $82 billion for local government; but state spending only grew slightly to $1.4 billion. The local share in 2005 was 98 percent of overall spending.

Chavez said that aggregate local spending on sewer and water from 1991 through 2005 was $841.1 billion. He said the $841.1 billion represented 14 years of reported data published by the U.S. Bureau of the Census. The MWC projected the 14 years of spending information another 6 years to fit a 20 year planning horizon. A conservative projection would put the 20 year spending at $1.208 trillion; and an aggressive projection would put spending at $1.442 trillion. He went on to state that even the aggressive 20 year spending projection did not take into account the additional costs that will be associated with climate change impacts. For example, if rising sea levels cause salt water intrusion on one coastal aquifer serving major population centers the cost for a new water supply could be staggering, not to mention the costs of such a disaster on the economy, public infrastructure and private property. Extended and more severe droughts could have a similar economic impact. Increase frequency and more severe precipitation could cause flooding that would require more extensive “hardening” of water infrastructure (especially gravity sewer collection systems that might be near totally destroyed) at great cost.

Chavez concluded that the mayors across the country can expect that local spending on sewer and water will exceed $100 billion annually by 2010. He said that cities have done a remarkable job over the last century of providing adequate and affordable water and sewer services to the nation. The challenges of the future, however, will take greater efforts and greater levels of cooperation between local government and the federal government and the private sector.

Chibby Alloway, President of Veolia Water-West stated “Veolia Water has been successful in helping our water partner clients meet many of their financial and technical water challenges. We have accomplished this by applying our worldwide depth of technical and operational expertise and research efforts with local knowledge to create tailored, constituent-focused solutions.” Veolia Water North America was the corporate sponsor of the 2007 Nation City Water Taste Test Competition held in Washington, DC and at the 75th Annual Meeting of The U.S. Conference of Mayors in Los Angeles. Alloway said “Successes achieved by public agencies ranging from Tampa Bay Water and Indianapolis to Arvin, Calif. and Leominster, Mass. can also be achieved by other municipalities, large or small, simply by reaching out and encouraging private'sector participation in providing life-cycle cost solutions for citizens.”